SSM issues directive to EWOG's trustee to freeze trust account funds
Published on: Sunday, April 28, 2024
By: Bernama
For illustrative purposes only.
KUALA LUMPUR: The Companies Commission of Malaysia (SSM) has issued an order letter to freeze funds in the trust accounts of East West One Planter’s Scheme, East West Horizon Planter’s Scheme, and East West Planter’s Scheme 1.
In a statement today, SSM said the move was a follow-up to the investigations it is currently undertaking on the companies under East West One Group Sdn Bhd (EWOG).
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“The order letter was sent to Pacific Trustees Bhd, the trustee for EWOG, on April 5, 2024 aimed at safeguarding the interests of investors in the schemes. It is a follow-up to the proposal by EWOG as the main holding company to carry out a recovery and restructuring plan for the schemes by utilising funds in the trust accounts,” it said.
Through the directive, SSM said Pacific Trustees is required to maintain funds in the Trust Account, Reserve Fund Trust Account, and Sinking Fund Trust Account, wherein the said funds are prohibited from being witdrawn and transferred to the management company in line with the provisions of Section 48(4)(a) of the Interests Scheme Act 2016.
"However, this fund freeze is subject to a recovery and restructuring plan for the schemes, upon approval by a majority of investors in the investors meeting," it further said.
On Sept 25, 2023, SSM had initiated an investigation under the provisions of the 2016 Interests Scheme Act and the Anti-Money Laundering Act (AMLA), Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 against these companies after receiving more than 46 complaints.
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